[ET Net News Agency, 20 March 2020] HSBC Global Research lowered its target price for
CK Asset Holdings (CKA)(01113) to HK$57.6 from HK$73.8 and maintained its "buy" rating.
The research house said CKA's FY2019 underlying profit of HK$28.7bn was 4-5% below
HSBC's estimates and consensus forecasts. On a positive note, the company announced an
increase in its DPS of 10.5% as a reflection of effective investment strategies to grow
the recurring income.
While HSBC believes the COVID-19 outbreak will undeniably affect CKA's businesses, such
as the hospitality division in Hong Kong and the pub operation in the UK, its overall
recurrent rental income should stay largely stable. HSBC revised down its earnings for
2020 and 2021 by 17% and 8%, to reflect its lower earnings assumptions for its recurrent
business given the worldwide outbreak of COVID-19. (KL)